Abstract

The psychological contract breach is the perception of the employees generates when they recognize that organization has failed to fulfill the reciprocal obligation, based on social exchange theory and equity theory. The aim of this research was to explore the moderating effect of age-related differences in relation to perceive psychological contract breach and feelings of violation. Findings revealed, by taking a sample of 184 responses from 9 different organizations in Pakistan. Older worker’s reaction after perceiving the psychological contract breach on work setting is found less reactionary towards feelings of violation as compare to younger employees. Furthermore, it is determined that age has a significant moderating effect to relationship of psychological contract breach and feeling of violation. Practical and theoretical implications are discussed at the end.

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